Product Piracy Holds Back Research, Development and Economic Growth

On Intellectual Property Day, April 26, Microsoft and sports lifestyle company PUMA drew attention to the need for copyright protection. With regard to software and brand piracy, the two companies highlighted the financial losses caused by counterfeit products and the resulting lack of potential for developing new ideas.

Archive notice: This article was originally published on April 29, 2008. Links and embedded videos are preserved as part of the historical record.

On the other hand, Microsoft and PUMA examined the damage counterfeit products cause to the economy as a whole. A Business Software Alliance study found that reducing Germany’s software piracy rate from the current 28 percent to 10 percent would create more than 12,000 new jobs and allow companies to record around five billion euros more in revenue. Audio footage with original statements from Microsoft and PUMA on software and brand piracy is available to radio broadcasters at http://www.radioinfopool.de for use.

«Many people underestimate the damage caused by counterfeit software. Yet there are millions of pirated copies in Germany. When the resulting losses for software manufacturers are added up, they amount to a substantial sum», says Robert Helgerth, Director of Small and Medium-Sized Business & Partners and a member of Microsoft Germany’s management board. «On the other hand, many users do not even know that their software is a pirated copy. For example, they bought the computer program over the Internet and thought they had found a bargain. To curb the trade in pirated copies there, we cooperate closely with Internet auction portals, among others. Trading in pirated copies is not in their interest either.»

Counterfeit products often also pose a certain risk to their users. Thomas Ehmer, head of PUMA’s Industrial Property Rights department, explains: «Counterfeit products are generally of extremely poor quality. An example: copied running shoes may look similar to their model, but they lack not only the high-quality material but also the original’s sophisticated cushioning system. Consequently, there is a greater risk of injury when running. To protect our customers from such imitations, we work with investigative authorities worldwide and have a network of international law firms and detective agencies.»